The beauty industry has been continuously evolving year by year. Even after the challenging pandemic, we can say that it still found its way to the market. Cosmetics revenue amounts to $103.80 billion in 2023 and is expected to grow annually by 4.84% between 2023 and 2027. Most of its revenue came from the United States — over $19 million in 2023. Are you also thinking about what cosmetics to sell?
Aside from the traditional brick-and-mortar, you can actually sell cosmetics on your own online store using digital platforms like Shopify or online marketplaces like Amazon and eBay as well as on social media sites like Instagram, Twitter, and Facebook.
Among the well-known beauty brands in the world include L'Oréal, Unilever, The Estee Lauder Companies, and Beiersdorf. L'Oréal was the top beauty manufacturer worldwide in 2022, with over $40 billion that year.
Selling cosmetics is not a piece of cake, but the possibility of earning abundant profit is high. To help you get started, we listed five profitable cosmetics to sell online this 2023.
- 5 Cosmetic Products Worth Selling In 2023
- Steps In Creating Your Own Cosmetics to Sell
- Find a Niche
- Conduct Industry Research
- Choose Raw Materials
- Formulate and Test the Product
- Establish Quality Assurance Strategy
- Finalize the Packaging
5 Cosmetic Products Worth Selling In 2023
In 2022, skin care products were at the top of the category, with approximately 41 percent of the global market. As people become more conscious about their overall health, having a proper skincare routine is also among those set priorities.
A regular skincare routine allows the face to look and feel fresh despite cramped and busy surroundings. Skin care products help in preventing acne, excess oil, and sunspots while maintaining consumers' skin at its best appearance. The routine usually consists of cleansing, toning, and moisturizing.
Even in 2021, the skin care products global market size was reportedly valued at $130.50 billion and is believed to accumulate 4.6% from 2022 to 2030. The growing demand for skincare products such as face creams, sunscreens, and lotions is expected to have a significant impact on this.
The search term “skin care” is continuously gaining high statistics in Google, with an above average number of people looking into it for the past year. The peak of it actually started during 2020, when the global pandemic hit the world.
Many became busy surfing the net and doing self-care activities, which allowed them to be exposed to different skin care routines and product essentials for better glowing skin.
Cosmetics is not just about those products you put on your face, but, it is the things you use for your entire appearance. Hair Care products are also among the best cosmetics to sell — dominating 22 percent of the global market in 2022. The global revenue is anticipated to increase between 2023 and 2027 by a total of $11.6 billion.
Just like in the skin, people have different kinds of hair — curly, thin, thick, or straight hair. This includes shampoo, conditioner, hair masks, and hair colors.
If you want to reach more people, you have to formulate products that can be used for different types of hair. For example, in shampoo, there are shampoos for volumizing, smoothing, colored hair, curly, and even for those with allergies to strong scents.
The Shopify stores under the Hair Care category have reportedly increased 9.7% in 2023 Q1. One of the most prominent hair care stores is OLAPLEX. The shop offers hair care products for blondes, brunettes, and even redheads. You can actually inquire to them for a personalized recommendation for your hair.
You can start a hair care product business by simply observing the needs of your target. Know the treatments they often need, and what outcome they want to achieve in order to successfully choose or formulate your product.
Sell makeup online and start by identifying your niche. Establishing your makeup brand is like hitting two birds with one stone — gaining profit while doing the thing you like. Makeup products account for approximately 16 percent of the global market. It includes lipsticks, blush, mascara, face powder, and more. The global makeup market size is projected to increase from $41.49 billion in 2023 to $58.15 billion by 2030.
The cosmetics industry is wide, you can always source your manufacturer or be the manufacturer yourself. You can work with a manufacturer to create your unique cosmetics product. There are cosmetics companies that are willing to work with independent businesses to build a line of makeup products, which is a great option if you want to label your products as your own. The first step is purchasing generic products from them which you can rebrand to suit your brand.
But, you can always find your manufacturer, which would let you oversee the whole making process to ensure quality cosmetics.
Another option is becoming your own manufacturer by making the products yourself. You will have to conduct all the inventory as well as packaging from beginning to end. You can take a look at PageFly’s previous blog about starting your own cosmetic brand online.
The Danish brand NOIE, for example, offers custom-formulated products for different types of customers. You have to undergo a skin test before buying products in order to distinguish what is best for you. After that, they will proceed on formulating a product to suit your skin condition.
Cosmetics businesses continue to cater to different needs and wants of the people. The fragrance revenue segment amounts to $8.71 billion in 2023 and is expected to grow annually by 1.70% until 2027.
Fragrances play a big role in an individual's smell and mood. Most people want to be remembered for how they smell, as it somehow gives an unforgettable impression of their overall personality. Some brands give free samples in the mall in order for the target customer to choose their preferred scent.
Perfumes are mostly citrus, woody, oriental, fresh, or musky. It doesn't just affect a person's appearance, but it also serves as a therapeutic tool for different people as they tend to bring calmness and relaxation to the body.
Your own beauty brand may consist of not just the aforementioned products, but also of scents that will surely help you drive curious customers along the way. Just make sure to be delicate in formulating perfumes that you will display on your store or own website.
The brand dossier has a wide range of luxury perfumes, which are colorant, UV filter-free, vegan, and cruelty-free, as well as paraben and phthalate-free, which are all safe for your body. Living up to their vision, which is to be sustainably good, their perfume bottles are made from 100% recyclable materials, aside from the pump. Dossier also eliminate the use of plastic samples.
The nail care products' global market size was at $19.10 billion in 2021 and is believed to have a compound annual growth rate (CAGR) of 5.2% up to 2030. When it comes to a person's regular grooming, nail polish cannot be taken out of context.
According to the latest data, there are over 34,000 live Skin & Nail Care Shopify stores, with the United States occupying over 50% of this category. It continues to grow throughout the years — having only 399 sellers during the first quarter of 2017.
It is increasingly becoming popular, especially with various nail art becoming trending online. The nails added style to one's fashion, which is why many tend to go to nail salons often for new designs or simply for nail retouching.
An example of an active nail care brand is OPI, which is established for professionals and newbies who want to open their own salon or simply do nail care routine. They are committed to providing unlimited nail polish shades for everyone interested.They also offer tutorials for better nail care procedures.
Steps In Creating Your Own Cosmetics to Sell
Starting a cosmetics business requires the next level of research and effort as creating a single item is not that easy. You don't actually need a degree, if you have the passion to make things work, then you can begin. But first, let us see the steps you will have to take in order to launch your own label.
Find a Niche
To begin your own beauty label, ensure your niche. This includes the product features you are going to have. You can go with organic, vegan, anti-aging cosmetics, and such.
By identifying your niche, you will also clearly understand what items to release as well as the ingredient lists that your cosmetics business will regularly need.
In deciding your niche, you will need to do thorough research in order to know your:
- target buyers
- unique selling point
- talents and skills
- short-term and long-term goals
Conduct Industry Research
While finalizing your niche, you need to do tight industry research on the side. Not just in building a cosmetics brand, but in all businesses, a merchant must continuously be equipped with knowledge about the product, service, competition, and industry in general.
After identifying your niche, you have to dive into the industry you have chosen. You can check surveys or updated studies online to get an overview of the particular industry.
With that, you can next locate your competitors. Be familiarized with their profile and study the dos and don’ts of running a cosmetic brand. Also, research your product's consumer demand by using tools like Google Trends or personally going to boutiques or visiting online stores.
Screenshot from Google Trends
TrendWatching offers features such as trend framework and reports, innovation database, industry portals, and more. Luckily, they have diverse pricing plans for both small and big businesses.
Meanwhile, Statista is known for having a massive list of statistical data that will surely help you acquire the numbers you need for a deeper understanding. Most of their research overviews can be accessed for free.
Screenshot from TrendWatching
Screenshot from Statista
These right platforms can provide you with a clearer view of whether or not consumers are interested in buying the types of cosmetics you want to release in the market.
Lastly, don’t forget about the legalities you need to secure, like FDA cosmetics approval and such.
Be keen on studying all aspects of your business as this is the only way to know what to do. Don't be afraid to reach out to experts if something seems odd or if an idea appears hard to understand. Your curiosity will feed everything your store needs. You can also try attending local conferences or meetings, if possible. There, you will have the chance to meet other merchants in the same industry as yours.
Choose Raw Materials
You can source products or raw ingredients online or in person. Note that before looking at suppliers, refer to and study again your chosen niche to identify exactly what you will need in your cosmetics line. Check if there are specific ingredients you need or you want to avoid and be detailed about it.
Work with the most trusted manufacturer, and take time to look around in order to determine who can fit best in your goals, values, and brand. Among the credible manufacturers of cosmetics include:
- Cosmetic Group USA, Inc. - They are known for their innovation-driven cosmetics as well as diverse personal care development and manufacturing facility. They work to provide products and services using the latest ingredients that will fit your values.
Cosmetic Group USA can give you the data you need to successfully launch your cosmetics products into the markets, regardless of the country or the group of people you target.
- Nutrix - A NSF ISO-certified contract manufacturer of personal care products that offers contract manufacturing services. Suppose you already have a product that you developed or even an idea, they can help you assist you with the execution up until packaging.
Even if you are still in the middle of deciding what to formulate, you can just simply plan it out with them, tell them about your needs and they will make it for you.
- Schwan Cosmetics - They offer a 360-degree customizing-approach to the innovation of your desired products, formulas as well as packaging. Though they already have set formulas for you to choose from, they still welcome your added ideas as you see fit. Schwan Cosmetics continuously improve their formulas to reach the requirement of their present and future clients.
Often consumers want to avoid unnatural cosmetic ingredients and chemicals that may turn them away from buying your products. People are very careful in using cosmetics nowadays, just like merchants, they do their own research before purchasing the product.
One of the most important parts is to make sure all ingredients you will use are compliant with Food and Drug Administration (FDA) guidelines. The FDA can inspect cosmetic manufacturing facilities if they have to.
Also, take note of the order minimums, expiration dates, and turnaround time for new orders as well as reviews from other customers.
Formulate and Test the Product
Selling products should not be taken lightly, especially if they will relatively make a huge impact on your consumers — which all businesses' services and items should be aiming for.
Before launching your product, you must check the entire formulation process and test the product itself. You need to know every single effect it has on a person's skin in order for you to successfully inform or warn the consumers, especially those that might be allergic to some of your ingredients.
You can schedule a specific number of days for thorough checking and testing of the items before proceeding with finalizing everything.
In cosmetics formulation, consider the ingredients used. As we repeat, some ingredients may have more dangerous effects than others, and some may not be ideal for certain skin types.
Do your research multiple times before going on with the ingredients. There are different types of skin, hair, nails, and people, in general. That is why, you should not limit your knowledge to just one angle.
Establish Quality Assurance Strategy
Always aim to make products of the highest possible quality as items with poor quality will surely make you lose what you started. Build a strategy before making your products available in the market in order to easily assure their consistent quality.
Stick to these strategies and make it a habit in order to ensure that all products are at their best before reaching buyers. Don't let one or two slip away.
After checking everything, especially formulation and the performance of your product, list all things to avoid such as harsh ingredients you discovered that might irritate consumer skin. Update your list when necessary. You can secure it through uploading the data online, to avoid misplacement and such.
Also, allot a room where you can safely store your finished products. This can be a small room in your house or a warehouse intended for your business.
Ingredients tend to have a long shelf life when stored properly. Use tightly closed containers or packaging and avoid placing them in a room with extremely high temperatures as it may affect the consistency of the product.
Always make sure to disinfect the tools you used to prevent bacteria growth as it can spoil the product and bring skin infections if released to the public. When selling cosmetics you have to check everything, test all, and secure every piece to avoid bad outcomes.
Create proper scheduling for quality assurance checking even before launching your cosmetics business in order to smoothly run it afterward.
Finalize the Packaging
Packaging design plays a significant role in attracting consumers. It is the first thing they see when looking for cosmetics to buy. Though it is really important, you can actually do this after going through all the other aforementioned steps.
When deciding on your packaging, try to connect it to your brand's values and missions as it is a way to present who you are and your business.
Big brands tend to go with minimalist styles, while some try those extraordinary and eye-catching custom packaging for a higher possibility of being seen despite competition around. But, aside from how it looks, be sure that it is also secured and convenient to keep.
This might be one of the most exciting parts, your creativity will be needed in this. Plus, you know that when you are in this part, you are one step closer to launching your product.
Cosmetics or beauty products are undoubtedly all developing throughout the years. With more advanced knowledge from formulation to marketing, the industry retains its massive market, especially after the pandemic.
People started prioritizing their overall health, and it includes their physical appearance which also provides an effect on how they function on a daily basis. If you feel and look good, then the domino effect starts.
As a merchant, you don't need to worry much about the marketing process, there are social media platforms and online marketplaces that you can access in order to reach a wider audience in your chosen niche.
Sell cosmetics with the vision to provide consumers with delicate and high-quality products that they can conveniently use in line with their needs.